3 Blue-Chip REITs Are Approaching the Year of the Horse with Higher Distributions

The three oldest real estate investment trusts in Singapore will increase their dividend payouts in the upcoming Year of the Horse.

However, for dividend investors, what they really need to focus on is not merely the immediate dividend payments, but whether the underlying driving mechanism behind these increases can ensure continuous profitability throughout the year and even for a longer period.

ParkwayLife REIT: The Built-In Escalator

ParkwayLife REIT (SGX: C2PU), or PLife REIT, owns a defensive portfolio of 74 healthcare properties across Singapore, Japan, and France, valued at S$2.57 billion.

For FY2025, the REIT delivered gross revenue of S$156.3 million, up 7.6% year on year (YoY), while net property income (NPI) grew 8.0% to S$147.5 million. 

Distribution per unit (DPU) rose 2.5% to S$0.1529, extending a remarkable streak of uninterrupted growth since its 2007 IPO.

Sharp-eyed investors may notice that distributable income actually surged 9.1% YoY, but the enlarged unit base from November 2024’s equity fund raising tempered the per-unit increase. 

However, the future looks bright: PLife REIT’s Singapore hospitals’ minimum guaranteed rent is set to jump 24.3% in FY2026 under its renewed master lease. 

This contractual step-up provides a rare degree of forward income visibility.

At a unit price of S$4.04, PLife REIT offers a trailing dividend yield of approximately 3.8%.

Keppel DC REIT: Riding the AI Wave

Keppel DC REIT (SGX: AJBU) owns 25 data centres across 10 countries with assets under management of approximately S$6.3 billion.

The FY2025 numbers are eye-catching. 

Gross revenue surged 42.2% YoY to S$441.4 million, while NPI jumped 47.2% to S$383.3 million. 

DPU came in at S$0.10381, a 9.8% increase from the prior year.

This growth was largely fuelled by S$1.1 billion in acquisitions, including Tokyo Data Centre 3. 

But it wasn’t just an acquisition story – the REIT achieved a massive positive rental reversion of approximately 45% for FY2025, reflecting the immense pricing power in a supply-constrained market. 

With AI serving as a structural demand driver, management remains bullish on the sector’s long-term prospects.

At a unit price of S$2.26, Keppel DC REIT offers a trailing dividend yield of approximately 4.6%.

CapitaLand Integrated Commercial Trust: The Compounding Machine

Singapore’s largest REIT by market capitalisation, CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, boasts assets under management of S$27.4 billion.

CICT posted gross revenue of S$1.6 billion (up 2.1%) and NPI of S$1.2 billion (up 3.1%). 

DPU rose 6.4% to S$0.1158, marking its fifth consecutive year of growth. 

The REIT is currently firing on all cylinders, starting with the strategic acquisition of the remaining 55% interest in CapitaSpring which brought the Grade A tower to full ownership.

Management also successfully lowered the average cost of debt from 3.6% to 3.2%, while maintaining high portfolio quality with retail and office occupancy at 98.7% and 95.7% respectively. 

Looking ahead, a pipeline of asset enhancements and the S$1.1 billion Hougang Central development provide significant long-term growth catalysts.

At a unit price of S$2.48, CICT offers a trailing dividend yield of approximately 4.7%.